Mumbai: Kalyan Jewellers plunged 7% in Thursday's trading, extending its fall to the fifth straight session, as investors deemed last year's run-up in the share price as excessive. The sell-off comes despite a strong quarterly business update by the company earlier this week that pointed to continued growth prospects. The stock, which closed at ₹658.1 on Thursday, has declined 15% in the past five sessions. "Kalyan Jewellers reported a revenue increase in the quarterly update on the back of a strong festive season, but the shares have fallen due to profit booking," said Akriti Mehrotra, Research Analyst, StoxBox. In 2024, Kalyan Jewellers shares surged 111.5%, while the benchmark BSE 500 index gained 14.6%."When investors who hold a good chunk of any company's shares book profits, the impact is typically massive on share price," said Hemang Jani, director at Finazenn, an investment advisory. "Kalyan Jewellers' holdings are concentrated among PMS (portfolio management services) and mutual funds and they seem to be selling now after the stock has done very well in 2024 leading to the weakness in shares."Since the company's stock market debut in March 2021, Kalyan shares have soared 780%. Jani said that when companies are in a growth and expansion phase, as Kalyan Jeweller seems to be, a rebound is likely to post corrections."As long as the company delivers on the operating metrics, a sharp sell-off is anticipated to be followed by a rebound," said Jani. "Currently the market sentiment is weak, and the intense profit booking is dragging the shares lower."Jani said that there are no growth concerns on Kalyan Jewellers and the fundamentals are in good shape, which indicates that renewed buying interest is expected.
- News Source Indiatimes (Click to view full news): CLICK HERE
0 Comments:
Leave a Reply